- Understanding the Irish VAT system is crucial for businesses in Ireland.
- Ireland follows EU VAT directives with local specifics affecting tax obligations.
- VAT rates in Ireland vary by goods and services.
- Standard rate is 23 percent for most goods and services.
- Reduced rate of 13.5 percent applies to electricity, restaurants, construction, repairs, cleaning, cultural, and sports events.
- Reduced rate of 9 percent applies to newspapers, electronic publications, and sports facilities.
- Super-reduced rate of 4.8 percent applies to live animals for food and agriculture.
- Zero rate applies to exports, EU supplies, certain foods, books, children’s clothing, oral medicines, e-books, and audiobooks.
- Some services are VAT-exempt, including financial, medical, educational, cultural, postal, betting, real estate, and social services.
- VAT registration is mandatory if turnover exceeds 75,000 EUR for goods or 37,500 EUR for services annually.
- Non-resident entities must register with the first taxable transaction.
- Distance sales within the EU have a 10,000 EUR threshold for digital services and goods, requiring One Stop Shop registration.
- Voluntary registration is possible below these thresholds.
- Registration for entities based in Ireland is done online via Revenue Online Service.
- Non-resident businesses register using paper forms.
- VAT Group Registration is available for linked entities, simplifying administration.
- Invoicing requirements include issue date, unique invoice number, supplier and customer VAT numbers, description, quantity, tax base, VAT rate, VAT amount, total payable, and amount in EUR if issued in another currency.
- VAT returns are typically filed bi-monthly, with some businesses filing monthly.
- Filing and payment deadlines are the 19th of the following month, with electronic filing by the 23rd.
- Electronic filing is mandatory via ROS.
- Businesses must also submit an annual trading details report.
- VAT refunds can be claimed within four years from the date of entitlement.
- Invoices must be issued according to specific requirements.
Source: eurofiscalis.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
